- Net commissions fell 12% at constant exchange rates during the three months ended June 30
- The company also revealed that gross profit fell by 18% to £166.1m.
Robert Walters has revealed a drop in quarterly net fees as the recruitment firm continues to suffer a “baseline adjustment in market conditions relative to the post-pandemic peak”.
The London-listed firm posted a 12 per cent drop in constant currency net fees to £84.8m for the three months ended June 30, with revenue down 18 per cent in June alone as the flow of new jobs proved “weaker than expected”.
Robert Walters warned that difficult labor market conditions have continued longer than expected, while his boss does not expect any immediate improvement.
The London-listed firm said net fees fell 12 percent at constant exchange rates to £84.8 million in the three months to June 30.
The group, which specialises in recruitment for the legal, accounting and technology sectors, said gross profit fell 18 per cent to 166.1 million pounds during the quarter.
Following a pandemic-induced hiring surge, tech companies have carried out massive layoffs over the past two years as interest rates rose.
Recruiters around the world have been struggling to achieve consistency in an uncertain economic climate that has led to a drop in client hires and candidates reluctant to change jobs.
Markets have been further affected in some countries by the elections.
Toby Fowlston, chief executive, said: ‘Fee income during the first half of 2024 continued to reflect the readjustment of market conditions relative to the post-pandemic peak.
‘This period of market adjustment is now longer than previously expected, with macroeconomic turbulence and political uncertainty restricting client and candidate confidence in certain geographies.
‘Our short-term planning now assumes that any material improvement in confidence levels will be gradual and unlikely to occur before 2025.’
In April, the company reduced its workforce by 4 percent to 3,812, meaning it has almost 600 fewer employees than at the end of March 2023.
After the update, Robert Walters shares fell 3.14 percent to 370 pence in morning trading on Monday.
